Anchor Glass Container Reports Results for 2000; Schedules Conference Call for Investors

Apr 03, 2001, 01:00 ET from Anchor Glass Container Corporation

    TAMPA, Fla., April 3 /PRNewswire/ -- Anchor Glass Container Corporation
 reported a net loss of $32.3 million for the year ended Dec. 31, 2000,
 including a net loss of $30.4 million in the last three months of the year.
 Escalating natural gas prices, which reached record levels in the fourth
 quarter, were the largest contributor to the loss.  Anchor reported a loss of
 $17.6 million for 1999, including a loss of $14.6 million in the fourth
 quarter.
     Net sales for 2000 were $629.5 million, up marginally from 1999.
     Dale A. Buckwalter, chief financial officer, said the escalating prices
 for natural gas, the principal fuel for manufacturing glass, increased costs
 by approximately $15 million compared to the prior year.  He said reduction of
 manufacturing production in December to reduce fuel use led to $5.4 million of
 unabsorbed overhead costs.
     Also contributing to the loss for the year were increased legal and
 professional fees, including $2.9 million of settlement expense related to the
 termination of all litigation and arbitration with Owens-Brockway Glass
 Container Inc., increases in the cost of corrugated packaging material and
 higher employee-related expenses.  Interest expense increased approximately
 $2.5 million compared to 1999, due to higher interest rates and interest
 associated with a new capital lease.
     For the three months ended Dec. 31, 2000, several factors affected
 results.  The effect of natural gas costs, including production curtailment,
 reduced results by $13.0 million.  Additional employee-related expenses added
 approximately $3.0 million to the loss.  Decreased sales volume reduced
 earnings approximately $2.0 million, and the company recorded an extraordinary
 loss of $1.3 million for the write-off of unamortized fees related to the
 refinancing of its revolving credit facility.  The company also recorded a
 write-down of approximately $1.2 million for a decline in fair value of shares
 of the common stock of its parent held pending government approval for
 contribution into Anchor's defined benefit pension plan.
     In the second half of 2000, the company initiated a natural gas cost-
 recovery program.  Buckwalter said the program recovered $6 million of costs
 in 2000.  The company expects the program to recover the majority of any gas
 cost increases in 2001.
     Anchor has scheduled a conference call with investors for Wednesday,
 April 4, 2001, at 10:30 a.m., Eastern Time to review year-end 2000 results.
     To listen to the conference call, please dial (212) 896-6066 five to ten
 minutes prior to start time and reference reservation number 18481985.  A
 recorded playback of the call will be available for 7 days by dialing
 (800) 633-8284 (within the U.S.) or (858) 812-6440 (International) using the
 reservation number above.
     Tampa-based Anchor Glass Container Corporation, the third-largest
 manufacturer of glass containers in the U.S., supplies beverage and food
 producers and consumer products manufacturers nationwide.  Parent company
 Consumers Packaging Inc. (Toronto: CGC.TO) is a leading international designer
 and manufacturer of glass containers.
 
 
                       Anchor Glass Container Corporation
                               Financial Summary
                      In thousands of dollars.  Unaudited.
 
     Years ended Dec. 31
                                                        2000           1999
     Net sales                                       $629,548       $628,728
     Income (loss) from operations                     (6,735)         7,688
     Interest expense                                 (29,750)       (27,279)
     Net loss                                         (32,266)       (17,511)
     EBITDA                                            49,508         70,208
 
     Balance sheet data at Dec. 31
                                                        2000           1999
     Total assets                                    $620,807       $613,037
     Total liabilities                                549,005        496,020
     Preferred stock - Series A                        76,428         70,830
     Total stockholders' equity (deficit)              (4,626)        46,187
 
     Other data as of and for the years ended Dec. 31
                                                        2000           1999
     Depreciation and amortization                    $57,259        $54,054
     Capital expenditures                              39,805         53,963
     Debt:
       Revolving credit facility                       58,957         40,895
       First Mortgage Notes                           150,000        150,000
       Senior Notes                                    50,000         50,000
       Other debt                                      10,322         12,237
 
 
     This press release contains "forward-looking statements" that are subject
 to a number of risks and uncertainties, many of which are beyond the control
 of the company.  Forward-looking statements are typically identified by words
 such "believe," "expect," "anticipate," "intend," "estimate," and similar
 expressions.  These risks and uncertainties may include the ability of
 management to implement its business strategy in view of the Company's limited
 operating history; the highly competitive nature of the glass container
 industry and the intense competition from makers of alternative forms of
 packaging; the Company's focus on the beer industry and its dependence on
 certain key customers; the fluctuation in the price of natural gas, the
 seasonal nature of brewing, iced tea and other beverage industries; the
 Company's dependence on certain executive officers; and changes in
 environmental and other government regulations.  In light thereof, there can
 be no assurance that the results and events contemplated by the forward-
 looking information contained herein will in fact transpire.  Accordingly, you
 are cautioned not to place undue reliance on these forward-looking statements.
 
 

SOURCE Anchor Glass Container Corporation
    TAMPA, Fla., April 3 /PRNewswire/ -- Anchor Glass Container Corporation
 reported a net loss of $32.3 million for the year ended Dec. 31, 2000,
 including a net loss of $30.4 million in the last three months of the year.
 Escalating natural gas prices, which reached record levels in the fourth
 quarter, were the largest contributor to the loss.  Anchor reported a loss of
 $17.6 million for 1999, including a loss of $14.6 million in the fourth
 quarter.
     Net sales for 2000 were $629.5 million, up marginally from 1999.
     Dale A. Buckwalter, chief financial officer, said the escalating prices
 for natural gas, the principal fuel for manufacturing glass, increased costs
 by approximately $15 million compared to the prior year.  He said reduction of
 manufacturing production in December to reduce fuel use led to $5.4 million of
 unabsorbed overhead costs.
     Also contributing to the loss for the year were increased legal and
 professional fees, including $2.9 million of settlement expense related to the
 termination of all litigation and arbitration with Owens-Brockway Glass
 Container Inc., increases in the cost of corrugated packaging material and
 higher employee-related expenses.  Interest expense increased approximately
 $2.5 million compared to 1999, due to higher interest rates and interest
 associated with a new capital lease.
     For the three months ended Dec. 31, 2000, several factors affected
 results.  The effect of natural gas costs, including production curtailment,
 reduced results by $13.0 million.  Additional employee-related expenses added
 approximately $3.0 million to the loss.  Decreased sales volume reduced
 earnings approximately $2.0 million, and the company recorded an extraordinary
 loss of $1.3 million for the write-off of unamortized fees related to the
 refinancing of its revolving credit facility.  The company also recorded a
 write-down of approximately $1.2 million for a decline in fair value of shares
 of the common stock of its parent held pending government approval for
 contribution into Anchor's defined benefit pension plan.
     In the second half of 2000, the company initiated a natural gas cost-
 recovery program.  Buckwalter said the program recovered $6 million of costs
 in 2000.  The company expects the program to recover the majority of any gas
 cost increases in 2001.
     Anchor has scheduled a conference call with investors for Wednesday,
 April 4, 2001, at 10:30 a.m., Eastern Time to review year-end 2000 results.
     To listen to the conference call, please dial (212) 896-6066 five to ten
 minutes prior to start time and reference reservation number 18481985.  A
 recorded playback of the call will be available for 7 days by dialing
 (800) 633-8284 (within the U.S.) or (858) 812-6440 (International) using the
 reservation number above.
     Tampa-based Anchor Glass Container Corporation, the third-largest
 manufacturer of glass containers in the U.S., supplies beverage and food
 producers and consumer products manufacturers nationwide.  Parent company
 Consumers Packaging Inc. (Toronto: CGC.TO) is a leading international designer
 and manufacturer of glass containers.
 
 
                       Anchor Glass Container Corporation
                               Financial Summary
                      In thousands of dollars.  Unaudited.
 
     Years ended Dec. 31
                                                        2000           1999
     Net sales                                       $629,548       $628,728
     Income (loss) from operations                     (6,735)         7,688
     Interest expense                                 (29,750)       (27,279)
     Net loss                                         (32,266)       (17,511)
     EBITDA                                            49,508         70,208
 
     Balance sheet data at Dec. 31
                                                        2000           1999
     Total assets                                    $620,807       $613,037
     Total liabilities                                549,005        496,020
     Preferred stock - Series A                        76,428         70,830
     Total stockholders' equity (deficit)              (4,626)        46,187
 
     Other data as of and for the years ended Dec. 31
                                                        2000           1999
     Depreciation and amortization                    $57,259        $54,054
     Capital expenditures                              39,805         53,963
     Debt:
       Revolving credit facility                       58,957         40,895
       First Mortgage Notes                           150,000        150,000
       Senior Notes                                    50,000         50,000
       Other debt                                      10,322         12,237
 
 
     This press release contains "forward-looking statements" that are subject
 to a number of risks and uncertainties, many of which are beyond the control
 of the company.  Forward-looking statements are typically identified by words
 such "believe," "expect," "anticipate," "intend," "estimate," and similar
 expressions.  These risks and uncertainties may include the ability of
 management to implement its business strategy in view of the Company's limited
 operating history; the highly competitive nature of the glass container
 industry and the intense competition from makers of alternative forms of
 packaging; the Company's focus on the beer industry and its dependence on
 certain key customers; the fluctuation in the price of natural gas, the
 seasonal nature of brewing, iced tea and other beverage industries; the
 Company's dependence on certain executive officers; and changes in
 environmental and other government regulations.  In light thereof, there can
 be no assurance that the results and events contemplated by the forward-
 looking information contained herein will in fact transpire.  Accordingly, you
 are cautioned not to place undue reliance on these forward-looking statements.
 
 SOURCE  Anchor Glass Container Corporation